Page 3 - Mega Digi Page: General Awareness - Jan 2016
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www.bankersguru.org
(General Awareness)
"Goods and Services Tax" would be a comprehensive indirect tax on
manufacture, sale and consumption of goods and services throughout
India, to replace taxes levied by the Central and State governments.
History:
Under the Vajpayee government, Asim Dasgupta Committee was setup to design a model on GST.
Kelkar Task Force suggested a comprehensive GST based on VAT principle.
A proposal to introduce a national level Goods and Services Tax by April 1, 2010 was first staged in the Budget
Speech for the financial year 2006-07.
The Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 was introduced in the Lok Sabha
by Finance Minister Arun Jaitley on 19 December 2014 and passed on 6th May,2015.
It has been pending in the Rajya Sabha. (Bhupendra Kumar Yadav Committee)
GST will Include CENVAT, service tax, central excise duty,
. Petroleum, Crude Oil
additional excise duties, excise dutie, service tax, additional
High speed diesel High speed Diesel
customs duty , special additional duty of customs (SAD), central
surcharges and cesses, State VAT, State sales tax, entertainment
Natural Gas
tax not levied by local bodies, luxury tax, taxes on lottery,
Aviation turbine fuel
betting, and gambling, tax on advertisements, State cesses and
Alcohol for Human consumption
surcharges related to supply of goods and services and entry tax
have been excluded.
not levied by local bodies.
Alcohol for human consumption.
Arvind Subramaniam panel recommendations:
17-18 % standard tax rate for bulk of Goods and Services
Revenue Neutral rate at 15.5 %
40% Taxation on demerit goods like luxury car, aerated beverages, pan masala and tobacco.
2-6 % tax for precious metals
Revenue Neutral Rate – The rate at which there will be no loss to state and central
governments.
Advantages:
Reduce the ‘’cascading’’ effect,
In uniformity with international taxation,
Simpler Tax structure
Disadvantages:
Doesn't include petroleum and alcohol products. Heavy loss to the exchequer.
Very high rates
Tax-sharing between states and the Centre "was" also an issue.
Date of Release - 06-Jan-16 SUBJECT: GA www.bankersguru.org
(General Awareness)
"Goods and Services Tax" would be a comprehensive indirect tax on
manufacture, sale and consumption of goods and services throughout
India, to replace taxes levied by the Central and State governments.
History:
Under the Vajpayee government, Asim Dasgupta Committee was setup to design a model on GST.
Kelkar Task Force suggested a comprehensive GST based on VAT principle.
A proposal to introduce a national level Goods and Services Tax by April 1, 2010 was first staged in the Budget
Speech for the financial year 2006-07.
The Constitution (One Hundred and Twenty-second Amendment) Bill, 2014 was introduced in the Lok Sabha
by Finance Minister Arun Jaitley on 19 December 2014 and passed on 6th May,2015.
It has been pending in the Rajya Sabha. (Bhupendra Kumar Yadav Committee)
GST will Include CENVAT, service tax, central excise duty,
. Petroleum, Crude Oil
additional excise duties, excise dutie, service tax, additional
High speed diesel High speed Diesel
customs duty , special additional duty of customs (SAD), central
surcharges and cesses, State VAT, State sales tax, entertainment
Natural Gas
tax not levied by local bodies, luxury tax, taxes on lottery,
Aviation turbine fuel
betting, and gambling, tax on advertisements, State cesses and
Alcohol for Human consumption
surcharges related to supply of goods and services and entry tax
have been excluded.
not levied by local bodies.
Alcohol for human consumption.
Arvind Subramaniam panel recommendations:
17-18 % standard tax rate for bulk of Goods and Services
Revenue Neutral rate at 15.5 %
40% Taxation on demerit goods like luxury car, aerated beverages, pan masala and tobacco.
2-6 % tax for precious metals
Revenue Neutral Rate – The rate at which there will be no loss to state and central
governments.
Advantages:
Reduce the ‘’cascading’’ effect,
In uniformity with international taxation,
Simpler Tax structure
Disadvantages:
Doesn't include petroleum and alcohol products. Heavy loss to the exchequer.
Very high rates
Tax-sharing between states and the Centre "was" also an issue.
Date of Release - 06-Jan-16 SUBJECT: GA www.bankersguru.org
